Anyone understand how the shares work in this demerger?
Mayne has split into Mayne Pharma and Symbion. Mayne shares closed at $5.93 on Friday, and today Symbion opened at $3.80 but closed at $3.16. Pharma closed today at $2.85, but I gather won't be trading normally until early next month.
So far my portfolio on HSBC Stockbroking only shows Symbion shares, no Pharma shares, which means it's showing an awfully big down day (46.7%). Am I correct in assuming that I should also be getting some Pharma shares, so that the total value would be about the same as Mayne before?
An earlier article in the SMH said:
This implies I should also be getting one Pharma share for each Mayne share, in which case my $5.93 Mayne share would now be a $3.16 Symbion share plus a $2.85 Pharma share - $6.01 worth in total.In the demerger Mayne shareholders receive one Mayne Pharma share for each Mayne share they hold. But under the capital reduction, the share capital of Mayne will be reduced by $2.49 for each Mayne share and the funds will be used to create the separate Mayne Pharma entity.
That certainly sounds better than a 46.7% down day
So is that how it works?